RECAPITALIZATION EXERCISE: ENHANCING SECTOR RESILIENCE

In response to evolving macro-financial risks and the need for a more resilient banking system, the Central Bank of Nigeria (CBN) launched a comprehensive recapitalization framework on March 28, 2024. This initiative seeks to reposition Nigerian banks to withstand economic shocks, enhance financial intermediation, and support the “government’s growth and diversification agenda”. The directive significantly increases minimum capital requirements across banking license categories, mandating compliance by March 31, 2026. Specifically, international commercial banks must raise paid-up capital to NGN500.00bn, national banks to NGN200.00bn, and regional banks to NGN50.00bn. Merchant banks are required to attain NGN50.00bn, while noninterest banks must meet NGN20.00bn (national) and NGN10.00bn (regional)